Insider Trading Policy

An insider trading policy is a document that outlines the rules and procedures for trading in a corporation’s securities by its directors, officers, and employees who may have access to material, non-public information. The policy typically prohibits insiders from trading in the corporation’s securities while in possession of such information, as well as from tipping others who may trade on the basis of that information. It may also specify blackout periods during which insiders are prohibited from trading, such as before the release of quarterly earnings reports. The policy may also require insiders to pre-clear trades with the corporation’s legal or compliance department, and to report their trades to the SEC or other regulatory authorities. An insider trading policy is an important tool for preventing illegal and unethical behavior, protecting the corporation’s reputation, and ensuring compliance with securities laws and regulations.